The Samarpan Co.Op.Credit So.Ltd., Deesa V. The ACIT.,B.K.Circle, Palanpur

ITA 1674/AHD/2011

• Counselvise Citation: 167420514 RSA 2011
• Duration Of Justice: 4 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 20-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 20-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VILAS SHINDE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD BEFORE S/SHRI G. D. AGARWAL, VP AND S. S. GODARA, JM ITA NO. 167 4 /AHD/2011 ASST. YEAR 2008 - 09 THE SAMARPAN CO - OP. CREDIT SOCIETY LIMITED 124 - 125, RAJIV GANDHI COMPLEX, NR. LALCHALL, NR. BU S - STAND, DEESA, DIST. B.K. - 385535 VS ACIT, BANASKANTHA CIRCLE, PALANPUR . (APPELLANT) (RESPONDENT) PA NO. AA A AT8371N APPELLANT BY SHRI MEHUL THAKKAR, A.R. RESPONDENT BY SHRI VILAS SHIN D E, SR. DR DATE OF HEARING: 20 . 8 .2015 DATE OF PRONOUNCEMENT : 04 / 09 /2015 O R D E R PER S.S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR A.Y. 2008 - 09 ARISE S FROM ORDER DATED 06 - 04 - 2011 PASSED BY THE CIT(A) - XX, AHMEDABAD IN APPEAL NO.CIT(A) - XX/618/10 - 11 , IN PROCEEDINGS UNDER SECTION 143(3 ) OF THE INCOME TAX ACT, 1961, IN SHORT THE ACT. 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND RAISED IN THE APPEAL CHALLENGES ACTION OF BOTH THE LOWER AUTHORITIES REJECTING ITS CLAIM OF SECTION 80P(2)(A)(I) DEDUCTION THEREBY ITA NO. 1674 /AHD/2011 (THE SAMARPAN CO - OP. CREDIT SOCIETY LTD.) A.Y. 2008 - 09 2 HOLDING IT AS A COOPERATIVE BANK . THE ASSESSEE SOCIETY FILED ITS RETURN ON 04 .0 2 .2010 STATING NIL INCOME. IT HAD CLAIMED ABOVE STATED DEDUCTION BEING A CREDIT COOPERATIVE SOCIETY. THE ASSESSING OFFICER NOTICED FROM ITS ACCOUNT THAT IT WAS CARRYING ON BANKING BUSINESS. HE TOOK INTO CO NSIDERATION SECTION 2(24) OF THE ACT AS AMENDED BY SUB CLAUSE (VIIA) W.E.F. 01.04.2007 AND ALSO SUB - SECTION 4 IN SECTION 80P FROM THE VERY DATE FOR OBSERVING THAT THE LEGISLATURE HAD WIDENED SCOPE OF INCOME SO AS TO INCLUDE COOPERATIVE SOCIETIES ALIKE THE ASSESSEE PROVIDING CREDIT FACILITIES TO MEMBERS THEREBY RESTRICTING THE IMPUGNED DEDUCTION ONLY TO PRIMARY AGRICULTURAL SOCIETY AND PRIMARY COOPERATIVE AGRICULTURAL & RURAL DEVELOPMENT BANK. HE SOUGHT GUIDANCE FROM EXPLANATORY NOTE TO THE AMENDMENT AND DE NIED ASSESSEES CLAIM OF SECTION 80P(2)(A)(I) DEDUCTION. ITS INCOME WAS ACCORDINGLY ASSESSED AS RS.9 , 4 3, 059 / - IN ASSESSMENT ORDER DATED 2 1 .12.2010. 3. THE CIT(A) HAS UPHELD THE ASSESSING OFFICERS ACTION. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSE D THE CASE FILE. RELEVANT FACTS ALREADY STAND NARRATED HEREINABOVE. THE ASSESSEE QUOTES A RECENT DECISION OF THE HONBL E JURISDICTIONAL HIGH COURT IN CIT VS. JAFARI MOMIN VIKAS CO - OPERATIVE CREDIT SOCIETY LIMITED [2014] 100 DTR 421 (GUJ.) HOLDING THAT SE CTION 80P(4) OF THE ACT WOULD NOT APPLY TO AN ASSESSEE WHICH IS NOT A COOPERATIVE BANK AS PER CBDT CIRCULAR NO.133 OF 2007 DATED 09.05.2007. THE REVENUE FAILS TO POINT OUT ANY DISTINCTION ON ITA NO. 1674 /AHD/2011 (THE SAMARPAN CO - OP. CREDIT SOCIETY LTD.) A.Y. 2008 - 09 3 FACTS. THIS CA SE LAW ADMITTEDLY RELATES TO A CREDIT C OOPERATIVE SOCIETY. THE CASE FILE REVEALS THAT THE NEITHER THE ASSESSING OFFICER NOR THE CIT(A) HAVE DISCUSSED MERITS OF THE ASSESSEES CLAIM SINCE THEY HAVE MAINLY RELIED UPON THE ABOVE STATED AMENDMENTS. THIS LEGAL OBJECTION STANDS OVERRULED. WE DIRECT THE ASS ESSING OFFICER IN THESE CIRCUMSTANCES TO CONSIDER THE ABOVE STATED DECISION AND ALLOW THE ASSESSEES DEDUCTION CLAIM AS PER LAW. 5. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS THE 04 TH DAY OF SEPTEMEBER , 201 5 . SD/ - SD/ - (G. D. AGRAWAL) (S. S. GODARA) VICE PRESIDENT JUDICIAL MEMBER AHMEDABAD: DATED 04 /0 9 /2015 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO: - 1. / REVENUE 2. / ASSESS EE 3. / CONCERNED CIT 4. - / CIT (A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE. BY ORDER / , / ,